Question

How does rivalry in the marketplace relate to the latter’s economic competitiveness?

Answer 1

Competitive Rivarly can prove to be very helfpul for the well beig of the consumers and promotong economic welfare of the marketplace. Rivarly in the market place definitely promotes economic competitiveness in the market place. More competitition gives an incentive to the firm to invest in research and developlpment for the innovation and better technology. Good technology helps the firms to reduce the cost significantly and helps to increase profit margin.

Also, when every firms try to reduce the price of the product, the welfare of the consumer increases.